Individual Disability Insurance

Most people do not think twice about insuring their material possessions like their home or car. However, many who closely evaluate their personal property do not insure what is probably their most valuable asset - their ability to work and earn a living. If you become sick or are injured and cannot work, will you be able to pay your bills and maintain your standard of living?

Whether or not you depend solely on your income to pay your bills and support your family, you should seriously consider disability insurance. If you become ill or are injured, disability insurance can help you pay your bills by replacing a portion of you or your family's income. It can help you maintain your current lifestyle and protect you and your family from serious debt or even filing bankruptcy.

When you are healthy and working, it may be hard to imagine an injury or illness disabling you. Unfortunately, disability can strike anyone. One in three Americans will become disabled for 90 days or more before age 65. In addition, over 60 percent of the bankruptcies in the US result from medical bills. A tailored insurance plan including disability coverage is critical to you and your family's financial future.

Your chance of becoming disabled is much higher than your chance of dying during your working years. For example, a 35-year old man is 2.5 times more likely to become disabled than die before age 65; a 35-year old female, 3.6 times more likely! See more examples in the table below:

How many times more likely are you to become disabled than die before age 65?

Age

Male

Female

25

2.5

4.0

30

2.5

3.8

35

2.5

3.6

40

2.5

3.5

45

2.5

3.3

50

2.5

3.2

55

2.4

3.1

60

2.4

3.1

What would happen if your paychecks stopped due to sickness or injury and you were unable to work? What if you couldn’t work for months, or years?

All your monthly bills, including food, utilities, house and car payments, would continue. Expenses like tuition and retirement funding, costs in addition to monthly living expenses, would continue, as well. Given the worst-case scenario of short- or long-term disability, disability insurance becomes vital to your financial plan.

Unfortunately, you may not be able to rely on other income sources like Social Security to protect you. In many cases, they do not apply – or are not enough. For more information on other income sources, see below. If you think you are already protected, consider this.

Social Security disability payments are limited to disabilities expected to last at least 12 months or end in death. To qualify, you must be unable to engage in any type of work.

Personal Savings can best be used to build a comfortable future. Add up your monthly bills, then multiply by 12 and you can see how fast even substantial savings can be depleted by an unexpected illness or injury.

Long-Term Disability Insurance offered through your employer is a good start. However, workplace disability benefits often cover only about 60 percent of your income. Can your family survive on just over half of a paycheck? In addition, group LTD policies often do not cover bonus or incentive compensation, and are taxable if the employer pays the premium.

Crissie Insurance Group offers a wide variety of options to meet the needs of today’s workforce.